PPB Exam with correct answers 2024

Procurement Technology - answer-Helps accelerate business improvements Results Oriented Budgeting - answer-Attempts to link a resource allocation to performance criteria Budget Cycle - answer-1. Planning 2. Formalization 3. implementation 4. evaluation Procurement Cards - answer-payment method whereby internal customers are empowered to deal directly with suppliers using a credit card Four principles of negotiation - answer-1. separate people from the problem 2. create a variety of options before deciding which to pursue 3. focus on interests, not positions 4. use objective criteria people elements to negotiation - answer-differences of perception, emotions, communications differences of perception - answer-it is crucial for both sides to understand the other's viewpoint emotions - answer-negotiation can be a frustrating process communications - answer-negotiators may not be speaking to each other, but may simply be grandstanding for their respective constituencies establish a BATNA - answer-The Best Alternative To a Negotiated Agreement stonewalling - answer-this occurs when one side has no intention of reaching an agreement unless there is an irresistible offer. good samaritan - answer-the other side is using this technique when it acts as if it is doing you a favor or making a great sacrifice with its offer in order to put you off guard and persuade you to accept it opposition negotiation tactics - answer-stonewalling, good samaritan, take it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate, status, escalating demands, divide and conquer, defense, win/win take it or leave it - answer-when the other side has made its final offer and says it will no longer negotiate splitting the difference - answer-this involves offering to cut the dollar difference in half, thus avoiding the discussion of the details of the deal nickel and dime - answer-the other side wants to negotiate each and every point good/bad cop - answer-this tactic is used to elicit feelings of sympathy and understanding in order to get concessions pity me - answer-this tactic is designed to rely on the sense of fair play and make it hard to walk away piece-by-piece - answer-this tactic is used to negotiate each item of a contract total package - answer-this tactic is used when an offer is acceptable, but one or two major elements still need to be negotiated. refusal to negotiate - answer-in this tactic the other side wants a concession even to talk status - answer-sometimes the party you are negotiating with is perceived to have a higher status, such as when the president of a company personally negotiates with a buyer. escalating demands - answer-extreme demands may be made to persuade you to lower your expectations for a final agreement. divide and conquer - answer-this is used to persuade various members of the team to accept the opposition's position defense - answer-this tactic tries to keep the other side on the defensive negotiation tactics - answer-win/win, spiraling agreements, changing of position, gathering information, making the cake bigger win/win - answer-the goal of principled negotiation is that the interests of both parties are satisfied spiraling agreements - answer-begin by reaching a minimum agreement even though it is not related to the objectives and build, bit by bit, on this first agreement changing of position - answer-formulate the proposals in a different way, without changing the final result gathering information - answer-ask for information from the other party to clarify their position making the cake bigger - answer-offer alternatives that may be agreeable to the other party, without changing the terms four activities of a price analysis - answer-1. review the competitive prices offered 2. compare with catalog or published price data 3. compare with historical prices 4. obtain data from other jurisdictions that have procured the same product or service Conflict resolution - answer-mediation, arbitration, litigation mediation - answer-a voluntary, flexible technique used to resolve disputes arbitration - answer-a process by which a dispute between parties is presented to one or more disinterested parties for a decision whose decision the contending parties agree to accept with no further appear process. litigation - answer-a process by which one party to a contract brings suit against the other party in a court of law general conflict resolution skills - answer-communication, listening, summarize, clarify, good speaking skills, communication side-trackers, win-win options, brainstorming, find a fair solution communication - answer-conflicts are often caused by problems in communication listening - answer-it is important to listen carefully summarize - answer-when a person is finished expressing a thought, summarize the facts and emotions behind what they have said so that they know you have understood what they've said and how they are feeling. clarify - answer-ask questions to clarify or make clearer different parts of the problem to make sure that you fully understand the other person's perspective good speaking skills - answer-send a clear message, with a specific purpose and with respect to the listener communication side-trackers - answer-don't interrupt, criticize, laugh at the other person, offer advice or bring up your own experiences or change the subject win-win options - answer-an idea or suggestion in which both sides can benefit is called a win-win option brainstorming - answer-the first step in problem solving is to come up with as many ideas as possible find a fair solution - answer-then go through the ideas using fair criteria to see which idea might be best basic steps to conflict resolution - answer-1. personal preparation 2. obtain agreements 3. state your initial positions/issues 4. restate each other's initial position 5. begin workin on solutions 6. summarize points of agreement and produce a solution 7. follow-up personal preparation - answer-review your agreements; be aware of your feelings. obtain agreements - answer-agree on the conflict resolution process, agree to treat each other with respect state your initial positions/issues - answer-take turns, focus on specific incidents, describe behavior and feelings, don't interpret the other's behavior restate each other's initial position - answer-take turns, restate what the other said, make corrections if necessary, reflect on how you feel begin working on solutions - answer-identify underlying issues, define your success criteria and brainstorm mutual solutions summarize points of agreement and produce a solution - answer-create a solution that is as specific as possible, write it down, agree to maintain confidentiality, agree to follow-up follow-up - answer-check on whether the solution is being followed, revise if necessary and discuss what you learned nominal group technique - answer-a group decision-making technique that focuses on generating alternatives and selecting among them by asking group members to independently write down ideas, present them in turn, clarify them for the group and rank them by voting privately. stages of negotiation - answer-Planning, actual negotiations, completion nickel and dime - answer-the other side wants to negotiate each and every point process improvement - answer-increase in value resulting from a modification in any phase of the procurement and/or supply process Process alignment to organization goals - answer-all processes, people and resources should be aligned to business goals Process first - answer-improvement focuses on incorporating cost effective and goal oriented processes non-value added activities - answer-generate zero or negative return on investment value added activities - answer-increase the value of output Customer focus - answer-align processes to achieve higher customer satisfaction benchmark regularly - answer-continually and frequently determine if the costs of performing business process outweigh the benefits establish who owns the process - answer-personal responsibility build central points into process - answer-points where customers decide if the process is meeting current benchmarks Standardize similar processes - answer-saves time and money make change now - answer-change process should be done immediately use right measures - answer-use measurements to improve process process improvement programs - answer-benchmarking, customer surveys benchmarking - answer-measuring a process service or product against the characteristics of the recognized leaders in the given area of review economy and efficiency audits - answer-examine a governmental unit's managerial and administrative priorities for economy and cost efficiency customer surveys - answer-measure client satisfaction by rating the procurement staff performance over the stated period program audits or evaluations - answer-monitor results to determine the extent to which a governmental unit has achieved program objectives standard - answer-result of a particular standardization effort approved by the recognized authority performance audits - answer-reviews all governmental operations and includes all of the other types of audits standardization - answer-adoption of a single product or group of products to be used by different organizations or all parts of one organization supplier manuals - answer-provide formal and extensive information for suppliers seeking to do business with the organization electronic commerce - answer-integration of electronic data interchange, ETF, and similar techniques into a comprehensive electronic based system of procurement functions audit reports - answer-interdepartmental, intradepartmental, higher level management post consumer - answer-materials made from commodities that have been used by consumers interdepartmental reports - answer-inform the management concerning departmental matters audit - answer-detailed review and examination of records pre-consumer - answer-materials left over in manufacturing processes and reused in a consumer product three forms of authority - answer-express, implied, apparent interdepartmental reports - answer-distribution to other departments on a need to know basis electronic sourcing - answer-obtaining bids from different suppliers via a single online portal procedure manuals - answer-written at a finer level that sets out processes, forms, and steps procurement technology - answer-helps accelerate business improvements preference - answer-advantage given to bidders/offerors based on pre-established criteria four types of audits - answer-financial compliance, economy & efficiency, program or evaluations, performance standardization committee - answer-used to create standards purposes of public budgeting - answer-goal attainment, financial control, managerial accountability express authority - answer-explicitly given in direct language rational budget decision model - answer-inter sector efficiency, inter program efficiency, intra program efficiency inter sector efficiency - answer-determines whether or not the cost of a government activity yields more benefits to society than if it remained in the private sector financial and compliance audits - answer-performed by accounting firms to determine whether transactions are recorded and verify accuracy inter program efficiency - answer-judges competing programs and allocates resources to the program that provides the greatest benefits intra program efficiency - answer-determine within each program if resources should be combined to maximize the net benefits from any given expenditure increment performance budgets - answer-relate expenditures to workloads line item budgets - answer-fixed budgets with monies appropriated for a particular period, usually one year other types of budgets - answer-performance budgets, program budgets, zero based budgets, results oriented budgeting implied authority - answer-determined by inferences and reasonable deductions arising out of the conduct of the principal toward the agent apparent authority - answer-principal allows or permits a person to function in a capacity that creates the illusion the person is an authorized agent how are policies and procedures maintained? - answer-policy manuals, procedure manuals, supplier manuals program budgets - answer-long range with multiyear plans prepared along with budget requests policy manuals - answer-centrally written and used to guide behavior toward specific organizational objectives higher level management reports - answer-issued to senior management and other key personnel electronic procurement - answer-conducting all or some of the procurement function over the internet simplification program - answer-screening the agency's inventory in order to determine which items should be consolidated, updated, or disposed zero based budgets - answer-relate expenditures and revenue to workloads and organize budget presentations according to "decision packets" of cost centers where alternative levels of service delivery can be specified joint use agreements - answer-agreements between various government agencies that may involve the shared use of public property debriefing - answer-contracting authority will meet with those parties whose proposals were not awarded protest - answer-written object by a potential interested party to a solicitation or award of a contract with the intention of receiving a remedial result cost analysis - answer-review and evaluation of cost data for the purpose of arriving at costs actually incurred or estimated market oriented pricing - answer-occurs when prices are defined according to the range of the quality of the product or service provided by the supplier value based pricing - answer-based upon the perceived or actual value that the procurement professional will receive market based pricing - answer-where pricing is contingent on the customer's current demand and a willingness of the competitors to supply similar products or services cost based pricing - answer-when a margin of profit is added to reasonable labor, material and overhead costs price analysis - answer-process of examining and evaluating a prospective price without performing cost analysis addendum - answer-written change, addition, alteration, correction or revision to a contract document procurement of the product or service - answer-identify potential suppliers of the product or service demand analysis - answer-used to estimate annual requirements based on the previous year plus anticipated use for the upcoming year components of a buying plan - answer-demand, market, supplier and value analysis market analysis - answer-researching product availability market volatility, supply and demand and price supplier analysis - answer-evaluates potential new sources along with current providers value analysis - answer-organized effort directed at analyzing the functions of a product or service service function - answer-one in which a designated unit relieves the rest of an organization from performing a function that is common to all units in that organization staff function - answer-to advise and assist affected groups within the organization without the connotation of authority line functions - answer-includes inventory management, warehouse, shipping and receiving considerations for keeping inventory - answer-lead time, recovery, stockless purchasing, just-in-time lead time - answer-period from date of ordering to date of delivery recovery - answer-ability of procurement to obtain urgently required materials and services from a supplier at premium cost stockless purchasing - answer-organization has no responsibility for inventory of the goods being purchased just-in-time - answer-delivery was developed in order to reduce inventory and warehouse management problems statutory laws - answer-constitutions, statutes, ordinances, and charters passed by governments administrative laws - answer-written rules and regulations and entity policy common law - answer-based on customs and traditions and codified through the legal system laws of agency - answer-someone who acts on behalf of a principle specification - answer-precise description of the physical or functional characteristics of a product or service requirements analysis - answer-value analysis applied to the writing of specifications to eliminate products or services that are not cost effective design specification - answer-establishes the characteristics an item must possess including details of how its manufactured performance specifications - answer-description of a product or service that provides a general functional recital of performance characteristics confirmation specification - answer-incorporates, to the degree necessary, attributes of both design and performance specifications qualified products list - answer-list of items that have been examined and have satisfied all applicable qualification requirements tolerance - answer-specified allowance for variation in weight or other designated measurement blanket orders - answer-agreement to purchase a given quantity of specific goods over a specified period of time term contracts - answer-a source of supply is established for a specified period of time for services or supplies schedule contract - answer-consolidates agency requirements by pre-establishing a bid opening date and require bid submittals by a certain time systems contract - answer-establishes a source of supply for a specified period for a large group or related family of materials requirements contract - answer-indefinite delivery/indefinite quantity contract where all actual purchase requirements during the contract period are filled by selected supplier open end contract - answer-sets forth general provisions of supplies and services that may be delivered or performed in any given time spot purchases - answer-one time purchases term contracts - answer-structured on a schedule depending upon the volatility of price and the ability of the supplier to deliver for an extended period incentive contract - answer-includes a means to reward the contract for reaching predetermined goals time and materials contract - answer-provides for contractor payment based on a direct labor, hourly rate terms and conditions - answer-standard language that includes rules which apply to bids and offers types of risk - answer-proposal risk, surety/liability risk, contractual risk, schedule risk, performance risk proposal risk - answer-describes the item of service purchased through legal documents and scopes surety and liability risk - answer-protects financial and legal interests of the agency contractual risk - answer-establishes change procedures schedule risk - answer-ensures timely delivery performance risk - answer-defines conditions under which acceptance will occur and what inspection is required definite - answer-specific requirement quantity and delivery date have been established requirements delivery contract - answer-when the public agency agrees to purchase all requirements for a certain period of time from the contractor bid bond - answer-bidder will accept contract as bid or else the surety will pay a specific amount fidelity bond - answer-insurance against losses due to dishonesty of an employee payment bond - answer-guarantees subcontracts will be paid for labor and materials expended on contract performance or completion bond - answer-protects public entity from loss due to the inability of the bidder to complete contract competitive negotiation - answer-method for obtaining goods, services and construction for public use in which may be conducted identification - answer-action of the public agency in recognizing the availability of products or services within marketplace investigate - answer-collecting and analyzing information related to a specific commodity or service market surveillance - answer-high level review of the industry examines all of the activities of the market market research process - answer-market surveillance, investigation, identification, procurement of the producer, or product market research - answer-collecting and analyzing information about capabilities within the market to satisfy agency needs lease-purchase decision - answer-based on the results of a cost/benefit analyses of the costs to own costs to lease, and the advantages and disadvantages disadvantages of leasing - answer-cost and control partial payment leases - answer-gives lessee credit for the residual value of the leased item after the lease period is complete full payment leases - answer-lessee pays the full amount plus interest charges and other costs types of financial leases - answer-full payout leases, partial payout leases financial leases - answer-used as a financing tool and may generate long term benefits operating leases - answer-used to fulfill short-term requirements when there is danger of rapid obsolescence lease option types - answer-operating leases, financial leases life cycle cost - answer-total cost of ownership over the lifespan of the asset supply and demand - answer-quantity of goods available for sale at a given price and the level of consumer need for those goods at a given price performance based contracting - answer-results oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least to a portion of a contractor's payment statement of work - answer-proposed solution by the successful proposer responding to the scope of work scope of work - answer-developed by procurement to be included in the solicitation to procure services or more complex combinations of products and services retraining - answer-prepares employee for revisions in current processes and procedures remedial training - answer-improve employee's job performance vertical training - answer-develop employee diversification and focus on special skills types of training - answer-initial, horizontal, vertical, remedial, retraining initial training - answer-provided to new employees to expose them to the body of knowledge to master position cross-functional team - answer-represent a variety of functions and levels in the organization but share a clear purpose and their combined efforts are needed to achieve that purpose self-directed teams - answer-responsible for carrying out an entire process all the way to the customer functional teams - answer-follow traditional models characterized by a manager and subordinates types of teams - answer-functional teams, self-directed teams, cross-functional teams adjourning - answer-when goals have been accomplished performing - answer-team reaches maturity to accomplish the goal and ability to cope with conflicts or problems norming - answer-group interaction changes as members agree on a common goal, assign individual tasks and roles storming - answer-members are comfortable with one another and have assessed everyone's strengths and weaknesses forming - answer-team comes together and members get acquainted phases of a team - answer-forming, storming, norming, performing, adjourning team roles - answer-leader, team facilitator, team recorder, time keeper training - answer-may also be provided to suppliers about policies and procedures websites - answer-increasingly used communication channel trade shows/expos - answer-brings clientele and suppliers together in a non-competitive atmosphere loyalty - answer-demands that the procurement staff first be faithful and dedicated to the entity and remain free from any conflict of interest honesty - answer-demands that procurement professionals must tell the truth in all of their dealings, both with contractors and public impartiality - answer-demands that procurement professionals treat all suppliers and contractors equally without discrimination codes of ethics - answer-impartiality, honesty, loyalty transparency - answer-easily accessible and understandable policies and processes service - answer-obligation to assist stakeholders professionalism - answer-upholding high standards of job performance and ethical behavior impartiality - answer-unbiased decision-making and action ethics - answer-acting in a manner true to these values (professional values) accountability - answer-taking ownership and being responsible to stakeholders for our actions professional values - answer-accountability, ethics, impartiality, professionalism, service, transparency benefits of technology - answer-reduction, collaboration, accurate and instant information, improved management flows, risk reduction, increase competition, diversity and inclusion, transparency, improved audits Ensuring compliance - answer-interviews, checklists, site visits, samples, demonstrations, tests, inspection Interviews - answer-should be conducted with suppliers when the agency is purchasing new commodities for the first time. checklists - answer-can help track all required documentation and certifications site visits - answer-generally required to ensure that the supplier is aware of the site conditions under which the contract will be performed. samples - answer-provided by suppliers either before or after the opening of bids, as provided for in the solicitation. demonstrations - answer-can be used during the supplier evaluation phase of an RFP for evaluating software to determine if the proposed software meets specifications tests - answer-can be performed on samples after the contract award, but before production begins inspection - answer-another technique used to ensure that the supplier has provided acceptable goods or services three types of inspections - answer-in-process inspection, receiving inspection, final inspection in-process inspection - answer-performed during the manufacturing process receiving inspection - answer-performed upon receipt of goods final inspection - answer-performed upon completion of the contract and prior to final payment to ensure that the item received conforms to the contract requirements methods to ensure compliance - answer-pre-sourcing, during sourcing, post award performance assessment plan - answer-used to evaluate supplier performance seven elements of a contract - answer-offer, acceptance, definiteness, legal consideration, mutuality of obligation, competent parties, legal purpose offer - answer-response to a solicitation that, if accepted, would bind the offeror to perform the resulting contract what is acceptance - answer-1. indication that an offeree is bound by the terms of the offer 2. an indication by one party of a willingness to act in accordance with the contract or offer 3. the assumption of a legal obligation by a party to a contract to the terms and conditions of that contract 4. the act of receiving by an authorized representative with the intention of retaining definiteness - answer-the important, or material, terms of an agreement, which are specifically expressed legal consideration - answer-something of consideration which is exchanged between parties that serves to form or bind a contract mutuality of obligation - answer-all the parties to an agreement are obligated or none of the parties is obligated competent parties - answer-these are classes of persons that the law deems are capable of entering into an agreement legal purpose - answer-the law will not enforce agreements which are for illegal acts express contract - answer-may be written or oral and is created when the formal elements for establishing a contract exist implied-in-fact contract - answer-occurs when some of the formal contractual elements occur through a person's conduct rather than being explicitly stated in words interpretations of terms and conditions - answer-courts use common law rules of interpretation protocols - answer-there are generally accepted practices regarding business protocols such as the precedence or ordering sequence of contract language interpretation according to the importance of words, format and emphasis cardinal rule - answer-this focuses on the plain language of the contract and the meaning that both parties gave to the text at the time of the contract signing whole instrument rule - answer-gives priority to the meaning of the overall contract as opposed to a section or clause of the contract. express language rule - answer-specifies that when there is a list of words which is followed by a general description of a category, then the contract applies only to the items in the list mechanical rules - answer-include handwritten notes taking precedence over printed text, quantities spelled out in words over the use of numerals and anything written in a conspicuous manner such as larger font six types of risk - answer-proposal risk, surety/liability risk, schedule risk, contractual risk planning tools - answer-contract administration plan (CAP), performance assessment plan (PAP), surveillance techniques contract administration plan (CAP) - answer-provides the framework for effective contract administration with an emphasis on process, output and outcome performance assessment plan (PAP) - answer-based on the technical requirements and terms and conditions of the contract and ensures that the agency is receiving the supplies or services to which it is entitled under the contract surveillance techniques - answer-provide for the monitoring and evaluating of all contract requirements through a combination of methods such as sampling, checklists, performance requirement summary lists or other information methods for proper acceptance, remedies or rejection - answer-acceptance, remedies for defects, rejection, post acceptance rights, gross mistakes amounting to fraud, warranties acceptance - answer-the acceptance process is a critical part of contract administration remedies for defects - answer-the solicitation and contract should suggest a variety of remedies for defects prior to acceptance rejection - answer-the formal process used by the public agency to officially notify the contractor that the product or service is defective and that it will not be accepted post acceptance rights - answer-acceptance substantially limits the public agency's ability to reject goods or services if a defect is found at a later date types of post acceptance rights - answer-latent defects, fraud latent defects - answer-these exist at the time of acceptance, but could not have been discovered through normal and reasonable inspection procedures fraud - answer-misrepresentation of fact, knowledge of falsity or reckless or wanton disregard of the facts, intend to mislead the agency into relying on misrepresentations, injury suffered by the public agency gross mistakes amounting to fraud - answer-this is a major mistake by the contractor that is so serious and uncalled for as not to be reasonably expected or justifiable warranties - answer-warranty clauses provide the public agency a remedy for latent or patent defects discovered after acceptance types of warranties - answer-implied and express warranties implied warranties - answer-obligations of the contractor that have not been assumed in express language express warranties - answer-explicit, written promises by the contractor to provide a specified level of quality, condition, description or performance of a good or service three types of electronic data rights - answer-unlimited rights, limited rights, no rights unlimited rights - answer-the public agency gains the right to use, reproduce, alter and disclose the technical data as it sees fit limited rights - answer-the public agency retains the right to use the technical data under certain circumstances, as negotiated by the contracting parties no rights - answer-the public agency retains no rights to technical data late or missed delivery - answer-this problem occurs when the contractor fails to deliver as required by the contract non-conforming products or services - answer-these occur when the contractor attempts to deliver or delivers products or services that do not conform to the specifications in the contract force majeure - answer-unexpected or uncontrollable events, including those caused by nature that can impact the contract price, terms and conditions. ordered suspensions - answer-if the public agency orders that work be suspended due to a provision in the suspension of work clause, the contractor may be compensated only if the resultant delay is unreasonable constructive suspensions - answer-occur when the public agency is found to be responsible for the work stoppage and did not issue a suspension of work types of remedies for defects - answer-require the contractor to correct the defects, price reduction, acceptance of minor nonconformities, correction of defects by public agency or an owner require the contractor to correct the defects - answer-an inspection clause should include language that addresses correction of defective work by the contractor price reduction, acceptance of minor nonconformities - answer-the doctrine of substantial completion allows a public agency to accept a product or service with minor nonconformities when correction would cause economic waste or it is not material correction of defects by public agency or an owner - answer-inspection and acceptance clauses typically allow the public agency to replace, correct defective work or perform the services and to charge or offset these costs to the contractor once the contractor is given an opportunity to correct the work and fails to complete the correction within a reasonable time liquidated damages - answer-damages paid usually in the form of a monetary payment, agreed to by the parties to a contract, which are due and payable as damages by the party who breaches all or part of the contract limits to the right to reject - answer-adequate description and measurements, substantial completion, correctable defects, previous action adequate description and measurements - answer-if a specification is not precisely stated or cannot be accurately measured, the public agency can only reject the work if it is not suitable for its intended purpose substantial completion - answer-the doctrine of substantial completion limits the public agency's remedies when rejecting work on the basis of strict compliance correctable defects - answer-major defects are the basis for strict compliance rejection and contract termination previous action - answer-previous acceptance of nonconforming work does not relieve the contractor of strict compliance if the public agency was unaware of the nonconformance guiding principles in contract conflict resolution - answer-think before reacting, listen actively, assure a fair process, attack the problem, accept responsibility, use direct communication, look for interests, focus on the future think before reacting - answer-it is important to think before reacting, consider the options, weigh the possibilities listen actively - answer-active listening means not only listening to what another person is saying with words but also to what is said by intonation and body language assure a fair process - answer-assure that the resolution method chosen as well as the process affecting that method is fair to all parties to the conflict attack the problem - answer-conflicts are resolved when the problem rather than the person is attacked accept responsibility - answer-each party must accept its own share of the responsibility and eliminate the concept of blame use direct communication - answer-individuals should say what they mean and mean what they say look for interests - answer-each party must uncover why they want something and what is really important about the issue in conflict focus on the future - answer-it is important to understand the dynamics of the relationship including the history of the relationship types of alternative dispute resolution - answer-meditation, arbitration, partnering meditation - answer-a neutral third party helps to resolve a dispute partnering - answer-the contracting parties meet after the contract award has been made but before work has begin on a project to identify expectations and set goals types of modifications - answer-bilateral and unilateral bilateral modifications - answer-require the approval of both parties in signatory form unilateral modifications - answer-the public agency's right to make a change to the contract pursuant to the changes clause of a contract, only require execution by the public agency's contracting officer constructive changes - answer-any actions or inactions on the part of the public agency that have not been made through formal change order authority but have caused the contractor to perform additional work that is outside the scope of the existing contract types of constructive changes - answer-contract interpretation, interference, failure to cooperate, nondisclosure of important information, work acceleration, defective or ambiguous specification or work statement contract interpretation - answer-constructive change can occur when the public agency interprets the contract during performance of the work in a manner that is more expensive than the interpretation upon which the contractor relied interference - answer-public agency interference during performance of the work can result in a constructive change failure to cooperate - answer-failure to cooperate can also cause a constructive change. failure to inspect a site ontime nondisclosure of important information - answer-if the public agency has information that is vital to the contractor's successful performance and it fails to disclose such information, a constructive change will be held to have occurred work acceleration - answer-if the contractor is ordered to accelerate work in a manner that causes him to incur additional costs, a constrictive change will be held to have occurred defective or ambiguous specification or work statement - answer-as the drafter of the contract the public agency is held responsible for the quality of that work product request for equitable adjustment (REA) - answer-changes to a contract may require additional work and expense on the contractor allowable costs - answer-the cost must be for work performed within the terms of the contract the public agency has agreed to reimburse and the costs must be reasonable subcontractor costs - answer-the contractor will negotiate an equitable adjustment with the subcontractor and include this amount with the REA impact and delay - answer-provides compensation to the contractor for performing unnedded work, performing inefficiently, stoppage of work, performing work during different hours or changing the work process changes in material and labor costs - answer-increase in material and labor costs that have been incurred are allowable overhead and profit - answer-result of costs that were directly increased or decreased as a result of the change termination for default - answer-contract clause which may be contained within boilerplate language that allows either contracting party the right to cancel a contract, either in whole or in part, due to failure of the other party to perform satisfactorily discharge by mutual assent - answer-termination of a contract by mutual agreement of all parties routing - answer-a determination of how a shipment will move from the point of origin to the destination including the selection of carriers and geographic routes demurrage - answer-a fee charged by a carrier against a consignee, consignor or other responsible party to compensate for the detention of the carrier's equipment in excess of allowable free time for loading, unloading, re-consigning or stopping in transit follow-up to delivery and receipt - answer-to review the status of a transaction; in connection with purchasing transactions expedite - answer-an attempt to rush or improve the contractually agreed upon delivery time or schedule types of losses and damages - answer-known loss, concealed loss, known damage, concealed damage known loss - answer-carrier fails to deliver the shipment intact to the consignee due to destruction, disappearance or damage concealed loss - answer-loss not visibly apparent at time of delivery, but is discovered later upon opening containers and checking contents known damage - answer-damage that is apparent and acknowledged by the carrier at the time of delivery concealed damage - answer-damage that is not readily visible at the time of delivery by the carrier or the receiver ABC classification of inventory - answer-class A items, class B items, class C items class A items - answer-mission critical to the agency's operation and cannot be without class B items - answer-general commodity items, off-the-shelf materials, high usage rates class C items - answer-very low dollar value and generally high volume activity such as office supplies scrap - answer-consists of ferrous and no-ferrous metals as well as non-metallic scrap such as wood, paper, plastic and other materials that do not meet requirements and cannot be used obsolete supplies and equipment - answer-items that are out of date, no longer in use or are effectively unusable excess - answer-materials no longer needed by the current owner but designated for transfer to another unit within the entity surplus equipment - answer-government equipment that is no longer needed by the agency and is designated for disposal outside of a government organization SWOT analysis - answer-strengths, weaknesses, opportunities, threats spend analysis - answer-The process of collecting, cleansing, classifying and analyzing expenditure data from all sources within the organization forecasting - answer-a tool used to determine future needs make or buy cost analysis - answer-occurs prior to the decision to acquire goods and services fixed period average - answer-a mathematical calculation used to divide the total usage for a fixed period, usually using the last fiscal calendar by the number of months involved moving average - answer-a continuous average method used to gather the most current usage information about an item by taking current trends into account and always using the most recent data weighted moving average method - answer-builds even more accuracy into the system by giving more significance to weighting specific information such as seasonal variations stable market - answer-off-the-shelf commodities are produced representing a reasonable and competitive marketplace unstable market - answer-short-run fluctuations are exhibited in an unstable market considerations of an unstable market - answer-timing, international political situations, weather and growing conditions, speculation and supply and demand timing - answer-a major factor when procuring goods and especially those that are affected by an unstable market international political situations - answer-many commodities utilized by a jurisdiction may be significantly impacted by international political situations weather and growing conditions - answer-market speculation can have an impact on volatile commodities speculation and supply and demand - answer-this applies to unstable commodities such as oil and petroleum-based products term contract - answer-a type of contract in which a source of supply is established for a specified period of time for specified services or supplies SMART objectives - answer-specific, measurable, assignable, realistic, time-based specific - answer-objectives should be specific measurable - answer-in order to be able to use the objectives as a part of a review process it should be very clear whether or not the department has met the objectives assignable - answer-make sure the objective is assigned to someone to achieve realistic - answer-realistic objectives recognize factors which cannot be controlled time-based - answer-the final factor for a good objective is that it is time-based strategic and procurement planning - answer-the transformation of the organization's mission, goals and objectives into measurable activities to be used to plan, budget, and manage the procurement function within the organization supply positioning - answer-an analysis of the complexity of the supply marketplace and its impact on agency service delivery based on such factors as: dependency of agency service delivery upon particular goods and service supply positioning matrix - answer-illustrates the supply continuum and the potential procurement strategies for each quadrant quadrant I - supply positioning matrix - answer-goods and services with a low degree of risk and a low expenditure relative to total procurement spend quadrant II - supply positioning matrix - answer-goods and services with a low degree of risk and a high expenditure relative to total procurement spend quadrant III - supply positioning matrix - answer-goods and services with a high degree of risk and a low expenditure relative to total procurement spend quadrant IV - supply positioning matrix - answer-goods and services with a high degree of risk and a high expenditure relative to total procurement spend cost-benefit analysis - answer-a comparative evaluation of the trade-off between the cost of a good or service and the value or benefit to be obtained in order to choose among alternatives COOP - answer-continuity of operations plan elements of a COOP - answer-essential functions, order of succession, delegation of authority, continuity facilities, continuity, communications, reconstitution, vital records management, human capital, tests-training-exercise, devolution of control and direction essential functions - answer-a subset of government and other organizational functions that are determined to be critical activities used to identify supporting tasks and resources that must be included in the agency's continuity planning process orders of succession - answer-ensure that agency and organizational personnel know who assumes the authority and responsibility of the agency's leadership delegations of authority - answer-establish who has the right to make key decisions during a continuity situation continuity facilities - answer-alternate facilities from which an agency can perform its essential functions continuity communications - answer-the availability and redundancy of critical communications systems to support connectivity to internal and external organizations reconstitution - answer-the process by which surviving and/or replacement agency and organizational personnel resume normal agency operations from the original or replacement primary operating facility vital records management - answer-the identification, protection,, and ready availability if electronic and hard copy documents human capital - answer-provides guidance to emergency employees and other special categories of employees who are activated by an agency to perform assigned response duties during a continuity event tests, training, and exercise - answer-provisions made for the identification, training, and preparedness of personnel capable of relocating to alternate facilities to support the continuation of the performance of essential functions devolution of control and direction - answer-capability to transfer statutory authority and responsibility for essential functions from an agency's primary operating staff and facilities to other agency employees and facilities and to sustain operational capability for an extended period phases of a COOP plan - answer-Phase 1: readiness and preparation Phase 2: activation and relocation Phase 3: continuity operations Phase 4: reconstitution